Business
Proposed Sale of Cambay PSC to Selan Exploration
Proposed Sale of Cambay PSC to Selan Exploration.
About this update from Synergia Energy Ltd
[{"type":"text","content":"\n\nRNS Announcement\n \n04 July 2025\n \nAIM: SYN\n\nProposed Sale of Cambay PSC 50% WI to Selan Exploration\n\n \nSynergia Energy Limited (\"Synergia\" or the \"Company\"), is pleased to announce the following update regarding its Cambay PSC (WI: 50%), onshore India.\n \nSynergia and Selan Exploration Technology Limited (\"Selan\") have executed a Heads of Terms (\"HoT\") for the proposed sale of the Company's remaining 50% working interest in the Cambay PSC.\n \nSynergia and Selan executed a Farm-out agreement to establish a joint venture on the Company's Cambay field on 14 February 2024, whereby Synergia transferred a 50% working interest in the Cambay PSC to Selan in exchange for a carry of the costs of an agreed work program. The agreement closed on 1 August 2024 following Government of India (\"GOI\") approval. The joint venture is currently preparing to drill its first new well.\n \nFollowing a strategic review, and having considered various alternatives, the Board has concluded that a full exit from Cambay on the terms proposed is in the best interests of Synergia's shareholders. The agreed consideration represents approximately 6x the Company's current market capitalisation.\n \nTransaction Terms\n \nSelan will pay Synergia a total consideration of US$14 million:\n \n· Initial payment of US$ 0.5 million on execution of the HoT\n· Cash payment of US$ 6.5 million following GoI approval for the transfer of the 50% working interest\n· Final cash payment of US$ 7.0 million 12 months after GoI approval\n· All payments are subject to applicable taxes\n \nSelan has been granted exclusivity for 180 days during which Synergia and Selan are to finalise a Sale and Purchase Agreement (\"SPA\") prior to requesting Government of India (\"GoI\") approval for the transfer of the remaining 50% working interest in Cambay PSC to Selan.\n \nThe proposed transaction if executed will be subject to Rule 15 of the AIM Rules for Companies and will be subject to shareholder approval with the Company expecting to publish a circular and notice of General Meeting (\"Circular\") upon finalisation of the SPA.\n \nThe Company is currently reviewing its ongoing cost base and forward strategy. Subject to completion, t...